Existing Customer Metrics Tracked

Metrics Plan to Track

Just over half (55%) plan to track customer retention rates, 46% want to track customer health, 45% customer lifecycle and 37% customer acquisition costs. A full 44% say they are not satisfied with their existing SaaS metrics.

Rate of Customer Churn

Three in 10 (30%) report an increase in churn, while 36% said it decreased.

Spending on Customer Retention

Well over two-thirds (69%) increased headcount, 58% invested in systems and technology, and just over half (52%) invested in retention programs.

Rate at Which Customer Health Is Tracked

About one-fifth (21%) track customer usage and satisfaction on a daily basis, 29% track it weekly and 29% track it monthly.

Driving More Revenue per Customer Engagement

Just over a quarter (28%) report increased revenue from up-sell and add-on sales from existing customers, but only 14% report an increase of 40% or more in revenue from these efforts.

Business Generated From Free Trials

Only 27% said half or more of their business comes from free trials, while 38% have no freemium program.

When the shift to software-as-a-service (SaaS) applications delivered via the cloud began, most of the focus was on selling these offerings directly, but as providers began to fully appreciate the challenges of activating a license along with getting customers to renew those subscriptions, many began proactively recruiting channel partners to help achieve that goal more economically. A new survey of more than 300 SaaS app providers by Totango, a customer management software vendor, drives this point home. While 89 percent cited new customer acquisition as their highest priority, 59 percent pointed to customer renewals. Nearly half cited up-selling and add-on sales to existing customers. To achieve those goals, 69 percent reported they have increased headcount, while 58 percent have invested in new systems and technology. Additionally, 52 percent said they have invested in retention programs. In essence, many SaaS app providers are starting to mature as a business. Most of them overestimated how fast they could grow using a direct sales model. The challenge many now face is trying to figure out the right balance between direct and indirect sales via the channel. Here's a look at key findings from the study.